If you’re an insurance agent, it’s essential for you to determine your area of expertise in whatever line you’re operating. If you’re working in property and casualty lines, you need to demonstrate your authority by keeping up with all the updates that happen within it. Surprisingly, pet insurance is also a form of property insurance. Pets are considered property in the insurance world. The pet insurance segment might be small compared to the rest of the industry, but it’s a niche that will grow more.
The pet insurance niche has experienced incredible growth in recent years. It is bound to happen, as two-thirds of U.S. households own a pet. The North American Pet Health Insurance Association reported that only 2.43 million got insurance in 2018. That's around 2% of total pets. The total Gross Written Premium came up to $1.3 billion in the same year. Out of that, dog insurance accounted for 88.9% of all policies sold.
Dog insurance holds the lion’s share in the pet health insurance market. Surprisingly, Millennials own the most pets. 80% of Millennials that had pets owned a dog. The growing number of pets, in addition to the increasing awareness of pet insurance, is driving sales in this niche. On top of that, the probability of dogs developing cancer, stomach problems, or skin ailments is higher. This probability is also fueling the growth. Dogs are perhaps the most “humanized” pet, so spending on their insurance is sure to rise.
If you’re exploring the pet health insurance segment, dog insurance policies are the way to go. It’s the most profitable segment within pet insurance. There are those who still doubt the concept behind this policy. But the spending habits of pet owners and their feelings towards their pets all indicate that dog insurance will only grow.